S Korea – FSS Improve Capital Markets System RE: Short Selling

S Korea – FSS Improve Capital Markets System RE: Short Selling

On 28 May 2025, SK FSS shared capital market innovation achievements and plans.

  • For a balance between corporate financing and investor protection, SK FSS will conduct priority review on paid-in capital increase in a consistent manner, evaluate the status of the priority review system for improvement, strengthen communication with firms.
  • For a sound shareholder activism culture, the authority will continue reviewing to ensure that shareholder activities and discussions at shareholder meetings are transparently disclosed, communicate with shareholders, companies, and markets.
  • SK FSS will issue the results of inspecting the status of voting rights exercise by asset management firms in early June 2025, improve the operation of the stewardship code.
  • Develop investigation techniques using AI, conduct a special crackdown on unfair trading and investor damage re political theme stocks prior to the presidential election.
  • Differentiate the scope and level of inspections of private equity funds considering investment scale, legal compliance, social responsibilities, and expand inspections.
  • Promptly take corrective action for minor violations due to improper system operation, take strict action where serious illegal short selling is detected; formulate guidelines to help foreigners easily use omnibus stock accounts, collect overseas investors' opinions.